New India-US Trade Deal Could Lower Tariffs To 15-16%: Report

• India may permit higher imports of non-genetically modified U.S. corn and soymeal
• Agreement may also include a framework for periodically reviewing tariffs and market access
• US imposes fresh sanctions on Rosneft and Lukoil

India and the United States are reportedly on the cusp of finalizing a long-overdue trade agreement. The deal could significantly lower U.S. tariffs on Indian goods from around 50% to around 15% to 16%, according to a report by Mint.

The deal, centered on energy and agriculture, may also involve India gradually reducing its imports of Russian crude oil. Both the Indian Ministry of Commerce and the White House have yet to comment.

U.S. President Donald Trump said he spoke with Prime Minister Narendra Modi on Tuesday, focusing mainly on trade and energy. Trump said that Modi assured him India would curb oil purchases from Russia. Modi confirmed the conversation via a post on X, thanking Trump for his Diwali greetings and emphasizing the shared values of democracy and unity against terrorism.

As part of the proposed deal, India may permit higher imports of non-genetically modified U.S. corn and soymeal. The agreement could also include a framework for periodically reviewing tariffs and market access. An official announcement is expected at the upcoming ASEAN Summit later this month.

Oil has been the focal point in the trade talks between the two countries. The United States had imposed a 50% tariff on Indian goods after Donald Trump accused New Delhi of funding the “senseless” war between Russia and Ukraine by purchasing the deeply discounted Russian crude oil.

Last week, Trump said that Modi promised him that India would reduce imports, even as Indian officials denied it.

US Sanctions Russian Oil Companies

Washington imposed fresh sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, accusing Moscow of showing no real intent to end the war in Ukraine. The move came as Russia held a major nuclear training exercise and just a day after a planned summit between U.S. President Donald Trump and Russian President Vladimir Putin was abruptly cancelled. Trump said he called off the meeting because “it didn’t feel right.”

The U.S. Treasury said the sanctions aim to weaken Moscow’s ability to finance its war efforts, marking a tougher stance after weeks of hesitation. Treasury Secretary Scott Bessent urged for an “immediate ceasefire,” with oil prices rising over $2 a barrel following the announcement.

Trump, who had previously resisted energy sanctions in hopes that Putin would negotiate peace, said the lack of progress left him no choice. Ahead of a meeting with Chinese President Xi Jinping, Trump urged Beijing to use its influence on Moscow. Meanwhile, the European Union approved its 19th sanctions package, including a ban on Russian LNG imports.

Despite the setback, Russian officials said summit preparations were still underway, though no date has been finalized. The delay follows renewed Russian demands for Ukraine to cede control of the Donbas region.

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